|
Post by mrclondon on Oct 23, 2018 19:01:50 GMT
Far too ambitions a loan for the likes of MT, it wont be filled, and the wont call underwriters to make up the difference I think the malaise extends far beyond MT. TC launched a £843k loan yesterday, admittedly only 8.75% all interest at maturity, but most of the development risk is now past. Less than £300k has been taken up thus far. Unlike most recent TC loans its not underwritten so feels unlikely to fill. FS generally need cashback to fill c. £1m loans (a good example is the recent loan of £975k to a known p2p borrower at 13% plus 1% cashback against a Liverpool aparthotel development in a freehold building). Lendy have written almost no new loans this year.
The c. £90m of overdue loans at Lendy (plus a few million at each of the other platforms and the £17m at COL) is creating a massive cashflow issue for the p2p sector - there feels to be relatively little new money flowing into p2p at present. FS was getting constipation a couple of months back, but after a few million of repayments across several loans things are flowing a bit more smoothly currently. Undoubtably some of the Wigan loan repayment will end up in this one, but whether the subsequent gap is sufficently narrow remains to be seen.
I suspect this loan would fall outside AC's risk criteria, and if I recall correctly they struggled somewhat with the redemption of a loan against a 71 year (?) leasehold apartment in London a couple of years ago.
Put simply, IMO this loan feels a bit too big for p2p at the present time (without some form of institutional underwriting rather than HNW/BH lenders acting as underwriters)
|
|
cedarcourtcapital
Member of DD Central
Listening is not the same as understanding
Posts: 190
Likes: 316
|
Post by cedarcourtcapital on Nov 2, 2018 13:50:22 GMT
Instead of addressing the main issue- the repayment strategy, a 1% cashback has been added. I wouldn't touch it at 10% cashback. Either I am sharing your hallucinatary experience, or your post changed Moneything's mind. I saw it there "open for 1% cashback" highlighted in yellow, but now it's gone. I wonder if they are raising the offer to 10% 😁
|
|
SteveT
Member of DD Central
Posts: 6,873
Likes: 7,918
|
Post by SteveT on Nov 2, 2018 14:54:37 GMT
1% cashback offer has reappeared, plus an update on the subject of loan refinance.
|
|
KoR_Wraith
Member of DD Central
Posts: 293
Likes: 297
|
Post by KoR_Wraith on Nov 2, 2018 20:53:58 GMT
But would they lend £1.6m? How much will the leasehold business valuation fluctuate, especially after Brexit? I don't know, it might be OK but not for me. I personally don't see Brexit playing a significant part in the outcome of this loan. I'm in for a modest amount. Have seen better, have seen worse.
|
|
|
Post by df on Nov 2, 2018 21:41:34 GMT
But would they lend £1.6m? How much will the leasehold business valuation fluctuate, especially after Brexit? I don't know, it might be OK but not for me. I personally don't see Brexit playing a significant part in the outcome of this loan. I'm in for a modest amount. Have seen better, have seen worse. Interesting how a newly invented word soon became a metaphor for uncertainty and fear... I'm in for a modest amount from day 1, but I won't increase for any incentives. I've already decided how much I'm going to risk on this loan if it ever fills. If instant returns weren't in place I would've given it a miss.
|
|
|
Post by Badly Drawn Stickman on Nov 3, 2018 12:15:28 GMT
I personally don't see Brexit playing a significant part in the outcome of this loan. I'm in for a modest amount. Have seen better, have seen worse. Interesting how a newly invented word soon became a metaphor for uncertainty and fear... I'm in for a modest amount from day 1, but I won't increase for any incentives. I've already decided how much I'm going to risk on this loan if it ever fills. If instant returns weren't in place I would've given it a miss. Wondrous things words, curiously 'willing to consider' is not a great motivator it would seem, even when allied with 1% cashback. Had I been in a position to do so I would probably have put a small amount in anticipating getting interest when it was pulled, seems to be the latest investment trend on P2P. I have a suspicion that the smaller loan offering could well fill when Wigan is repaid. Which would suggest that the words 'repaid in full' invoke a feeling of well being.
|
|
invester
P2P Blogger
Posts: 612
Likes: 618
|
Post by invester on Nov 5, 2018 9:03:18 GMT
Doesn't look like this will fill.
I do think there is a gap in the market with FC taking away the bid system.
It would be quite interesting if MT allowed pledges at an interest rate that one could set themselves, then go back to the borrower with the offer. It would save a great deal of hassle and expense for them.
I do suspect that if Moneything want this type of deal to get off the ground they would have to sacrifice some of their own profits out of this.
|
|
|
Post by GSV3MIaC on Nov 5, 2018 9:59:52 GMT
Would need a whole new IT system too, and you have to watch out for the scaling problems which afflicted FC when 1000s of bidders tried to undercut each other by 0.1% in the last 50 seconds of an auction (although many of those problems would have been easy to solve - in fact many suggestions to do that were made). I'd also only sign up if everyone got the same rate when the dust settled .. i.e. people would bid 'I'll take £1000 at anything above 11.5%', and if the bids at 12.5% were needed to fill the loan, then everyone gets 12.5% - no penalty for bidding too low (the 4%-ers were one of the problems on FC).
|
|
|
Post by eascogo on Nov 12, 2018 16:57:40 GMT
Surprised this hasn't been pulled yet. How is the £1700p/w interest being sustained? I reckon many are investing in this on the assumption that it is destined to be pulled. A nice earner with little risk. The drain on resources for MT is obvious. It would require a large loan repaying to make an impact. However MT may well pause until a new pending loan is available to open the floodgate (£700k+) so some of that stays on the platform and hopefully helps to fill the new offer.
|
|
keystone
Member of DD Central
Posts: 713
Likes: 575
|
Post by keystone on Nov 12, 2018 19:19:59 GMT
Surprised this hasn't been pulled yet. How is the £1700p/w interest being sustained? I reckon many are investing in this on the assumption that it is destined to be pulled. A nice earner with little risk. The drain on resources for MT is obvious. It would require a large loan repaying to make an impact. However MT may well pause until a new pending loan is available to open the floodgate (£700k+) so some of that stays on the platform and hopefully helps to fill the new offer. We had £2.4m of Wigan repaying last week and that didn't seem to make much of an impact. Hopefully MoneyThing has high hopes of Scotland and Lancashire to repay soon.
|
|
zendog
Member of DD Central
Posts: 137
Likes: 83
|
Post by zendog on Nov 12, 2018 20:23:32 GMT
I reckon many are investing in this on the assumption that it is destined to be pulled. A nice earner with little risk. The drain on resources for MT is obvious. It would require a large loan repaying to make an impact. However MT may well pause until a new pending loan is available to open the floodgate (£700k+) so some of that stays on the platform and hopefully helps to fill the new offer. We had £2.4m of Wigan repaying last week and that didn't seem to make much of an impact. Hopefully MoneyThing has high hopes of Scotland and Lancashire to repay soon. Newcastle refinance was also supposed to complete on Friday, but didn't - and the update was "We will have a better understanding on Monday (12th), as to the likely timescales." (Still waiting!) If this does complete, it would release just over £2.5m back into investors hands which may, and I stress MAY, be used by some to invest in this MTBJ loan.
|
|
|
Post by thingy on Nov 12, 2018 21:33:17 GMT
Like possibly many others I have invested a small amount in this loan. I would perhaps have invested more, but the novel "6 months interest in advance" arrangement, allied with upcoming changes to the secondary market make me think that this is a loan which might have to be held until completion.
And I might not want to.
|
|
r00lish67
Member of DD Central
Posts: 2,691
Likes: 4,048
|
Post by r00lish67 on Nov 12, 2018 22:24:13 GMT
Like possibly many others I have invested a small amount in this loan. I would perhaps have invested more, but the novel "6 months interest in advance" arrangement, allied with upcoming changes to the secondary market make me think that this is a loan which might have to be held until completion. And I might not want to. Not sure I follow you - AIUI, the forthcoming changes to the SM will make it far more likely that you'll be able to to sell if you wish, not less. You'll be able to offer it at a discount, and sell to someone. As it stands, unless you're fortunate/technically gifted enough to be in the first few to sell, there'll just (v.likely) be a mob at par at the 6 month point.
|
|
IFISAcava
Member of DD Central
Posts: 3,664
Likes: 2,988
|
Post by IFISAcava on Nov 12, 2018 23:52:45 GMT
Over 6 months, you gain 6%. People start listing at a 5% discount. The market value of your investment drops 5%. Might as well have had it in a savings account. If that's really what you think will happen and you want your money after 6 months then yes.
|
|
IFISAcava
Member of DD Central
Posts: 3,664
Likes: 2,988
|
Post by IFISAcava on Nov 13, 2018 1:07:41 GMT
My point is that when others discount their investment, it has a knock on effect on the market value of everyone else's. No - there is a market value. With a par only system you just don't know what it is.
|
|